Pink Home Loans is offering a flexible buy to let mortgage for people who want to become landlords or existing landlords who want to build up a portfolio of properties.
The mortgage has a capped rate of 6.99 per cent for the first year. It then reverts to 1.5 per cent over the Libor rate which is currently 6.28 per cent. A self-certification options is also available which is useful for people who cannot produce evidence of their income, particularly the self-employed. This option has a capped rate of 7.24 per cent in the first year which then reverts to 8.03 per cent.
Full flexibility is offered with interest calculated daily and the ability to overpay, underpay, take payment holidays and make lump sum withdrawals. It also scores highly as there are no redemption penalties.
In comparison, Legal & Generals Flexi mortgage is a buy to let flexible mortgage with a fixed rate of 6.99 per cent until November 30, 2003. This has the advantage of a stable rate for a longer period but there are redemption fees of 3 months interest in the first three years. It is also not as flexible as the Pink Home Loans mortgage as underpayments are not allowed.